Administrative Policy
13 June 1994 External T.I. 9412055 - DSLP
A maternity leave which was taken during the deferral period of a plan does not suspend the plan and forms part of the deferral. An employee who...
4 October 1991 T.I. (Tax Window, No. 10, p. 19, ¶1496)
A provision in a phantom stock plan which establishes a right to a current salary distribution in the event of an actual dividend payment by the...
9 May 1991 T.I. (Tax Window, No. 3, p. 13, ¶1252)
Where an employee decides in the case of an arrangement described in Regulation 6801(b) that he or she no longer intends to take the leave of...
ATR-39 (11 March 1991) "Deferred Salary Leave Plan"
Description of qualifying plan.
2 October 89 T.I. (March 1990 Access Letter, ¶1163)
The arrangement must clearly provide that under no circumstances will a deferral period in excess of six years be allowed. Where for some...
18 October 89 Meeting with Quebec Accountants, Q.11 (April 90 Access Letter, ¶1166)
RCT will not allow an extension of the six-year period referred to in Regulations 6801(a)(1) where the arrangement to fund a leave of absence is...
18 October 89 Meeting with Quebec Accountants, Q.12 (April 90 Access Letter, ¶1166)
Returning to an equivalent position within the same business or organization will constitute a return to "regular employment" or "fonctions...
18 October 89 Meeting with Quebec Accountants, Q.15 (April 90 Access Letter, ¶1166)
The six-month period referred to in Regulations 6801(a)(i) must be uninterrupted and is to be measured in accordance with the guidelines in the...
Articles
Greville, "Sabbatical Plan Constitutes Effective Method of Deferring Compensation", Taxation of Executive Compensation and Retirement, December 1989/January 1990.
Paragraph 6801(a)
Administrative Policy
23 April 2021 External T.I. 2020-0872371E5 - Sabbatical leave plan - Application of SDA rules
Under a sabbatical leave plan (the Plan):
- Participating employees elected to purchase credits towards a future sabbatical leave by deferring...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(11) | consequences of a sabbatical leave plan being offside the SDA rules | 275 |
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(o) | s. 8(1)(o) deduction when employer notional contributions to off-side sabbatical leave plan | 161 |
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(n.2) | s. 12(1)(n.2) inclusion to employer when employee forfeits entitlement to employer notional contribution to off-side sabbatical leave plan (which had generated s. 20(1)(oo) deduction) | 179 |
19 December 2016 External T.I. 2016-0643191E5 F - Deferred Salary Leave Plan (DSLP)
In addition to providing a comprehensive discussion of the deferred salary leave plan (“DSLP”) rules, CRA addressed the question whether...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | salary advance arrangement results in recognition when advances made rather than when earned | 125 |
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(n) | deduction where “repayment” of advances made during employee leave | 217 |
2013 Ruling 2012-0451771R3 - Deferred Salary Leave Plan (DSLP) - ITR 6801(a)
underline;">: Sabbatical Fund. A self-funded sabbatical program is to be implemented as agreed under a Collective Agreement. During XX consecutive...
4 February 2009 External T.I. 2008-0292771E5 F - Régime de congé à traitement différé
In the course of providing a detailed discussion (similar to that in 2016-0643191E5 F) of the DSLP rules in relation to a copy of a plan that had...
8 June 1995 External T.I. 9507415 - CONDITIONS RE DEF SAL LEAVE PLAN
Discussion of deficiencies in draft DSLP to be included in a school board's collective agreement.
5 June 1995 External T.I. 9505815 - DEFERRED SALARY LEAVE PLAN 6801(A)
Comments on various deficiencies in proposed draft DSLP.
23 June 1993 T.I. (Tax Window, No. 32, p. 22, ¶2627)
A deferred salary leave plan will cease to be a prescribed plan at the time that it is reasonable to assume that the conditions of the plan will...
13 January 1992 Memorandum (Tax Window, No. 15, p. 21, ¶1694)
An employee who is working 20 hours per week prior to a six-month leave would not satisfy the requirement in Regulation 6801(a)(v) if he returned...
13 and 23 December 1991 T.I. (Tax Window, No. 11, p. 1, ¶1541)
If a teacher is employed but is not required to report to work between semesters, the time between semesters may be included in the calculation of...
Subparagraph 6801(a)(i)
Administrative Policy
14 June 2001 External T.I. 2001-0081885 F - Congé à traitement différé
Regarding a sabbatical leave plan for teaching staff, CCRA stated:
[A] sabbatical leave can be taken before the date initially scheduled as long...
28 May 2020 External T.I. 2020-0849681E5 - Deferred salary leave plan
The correspondent had had discussions with Finance regarding employees providing essential services having been recalled from their leave before...
29 May 2020 External T.I. 2020-0849841E5 F - Deferred salary leave plans (DSLP)
When asked to address employees who had started their three- or six-month leave period, but then had to interrupt it to return to work for...
15 May 2020 External T.I. 2020-0848511E5 F - Deferred salary leave plans (DSLPs)
The correspondent’s leave with deferred salary was to commence on July 1, 2020 (corresponding to the expiry of the maximum six-year deferral...
14 May 2020 External T.I. 2020-0848641E5 - Deferred salary leave plans (DSLPs)
The deferred salary leave plan (DSLP) of the taxpayer reflects the maximum deferral period of six years ending in January 2021 (with slated leave...
29 May 2014 External T.I. 2014-0520851E5 F - Deferred Salary Leave Plan
Can the employer claim an annual withdrawal or management charge for deferred amounts for an employee whose agreement is governed by a DSLP,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(iv) - Clause 6801(a)(iv)(B) | no requirement for employer to provide a return on the deferred amounts | 192 |
Subparagraph 6801(a)(ii)
Administrative Policy
12 June 2002 External T.I. 2002-0143325 F - REGIME DE CONGE A TRAITEMENT DIFFERE
Can an employee join a second deferred salary arrangement at a time when the employee is still part of a salary deferral arrangement prescribed...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(iii) | where 2 SDAs, combined application of reduction under Reg. 6801(a)(iii)(A) | 236 |
Subparagraph 6801(a)(iii)
Administrative Policy
23 January 2014 External T.I. 2013-0515721E5 F - Deferred Salary Leave Plan
Can a deferred salary leave can be taken by the employee during an earlier period rather than at the end of the period? CRA responded:
[A]n...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(v) | full-time employee cannot return on a part-time basis | 150 |
12 June 2002 External T.I. 2002-0143325 F - REGIME DE CONGE A TRAITEMENT DIFFERE
Regarding the situation where an employee joins a second deferred salary arrangement at a time when the employee already still part of a salary...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(ii) | combined application of 33 1/3% limit where 2 SDAs | 130 |
Subparagraph 6801(a)(iv)
Administrative Policy
11 March 2003 Internal T.I. 2002-0180997 F - CONGE A TRAITEMENT DIFFERE
Can the employee delay the start of the unpaid leave for six months by working those six months in order to avoid a return to work for one year?...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(v) | timing of taxation from breaking Reg. 6801(a)(vi) depends on timing of break decision/ full-timer must return to full-time work | 258 |
Clause 6801(a)(iv)(B)
Administrative Policy
29 May 2014 External T.I. 2014-0520851E5 F - Deferred Salary Leave Plan
Would the condition in Reg. 6801(a)(iv)(B) be met if the agreement provides that the deferred amounts are held by the employer for the benefit of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(i) | terms cannot provide for voluntary withdrawal of employee except where hardship | 174 |
Subparagraph 6801(a)(v)
Administrative Policy
8 December 2020 External T.I. 2020-0869961E5 - DSLP and voluntary exit program
An employee participant in a deferred salary leave plan (“DSLP”), who was scheduled to begin six months DSLP leave on January 1, 2021,...
23 January 2014 External T.I. 2013-0515721E5 F - Deferred Salary Leave Plan
Can an employee, who works full-time prior to the start of a deferred salary leave and returns to work on a part-time basis after the leave of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(iii) | can have a salary deferral period, then leave, then payback period | 187 |
17 July 2007 External T.I. 2007-0237811E5 F - Régime à traitement différé
An employee takes a leave of six months under a deferred salary leave plan, but then resigns after returning to work. CRA noted:
[The Reg. 68010...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(n) | s. 8(1)(n) for required repayment of deferred salary under a deferred salary leave plan | 182 |
16 November 2006 External T.I. 2006-0203131E5 F - Régime à traitement différé
An employee signed a deferred salary leave contract for the period from June 29, 2002, to December 29, 2006, with his leave being taken from May...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | advances received were salary rather than loans and, when repaid, reduced employment income | 279 |
4 October 2005 External T.I. 2005-0149671E5 F - Congé à traitement différé
Regarding the situation where employees had accumulated vacation leave throughout their careers in order to build up a pre-retirement time bank,...
11 March 2003 Internal T.I. 2002-0180997 F - CONGE A TRAITEMENT DIFFERE
Why, under a salary deferral arrangement, is the employee required to report to work for a period at least equal to the period of leave? The...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(iv) | employee can reduce the leave in order to reduce the resumed-work requirement | 124 |
25 June 2002 External T.I. 2002-0143675 F - CONGE A TRAITEMENT DIFFERE ET RETRAITE
Can an employee join a plan described in Reg. 6801(a) and retire without returning to the employee’s usual duties with the employer for a period...
14 June 2021 External T.I. 2021-0896151E5 - Deferred Salary Leave Plan - Retiring After Leave
Is an employee participating in a deferred salary leave plan (“DSLP”) permitted to retire immediately following completion of the leave of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(11) | CRA generally will not backdate loss of DSLP status if the employer terminates and cashes out the arrangement within 60 days of it ceasing to comply | 266 |
29 May 2001 External T.I. 2001-0082675 F - CONGE A TRAITEMENT DIFFERE ET RETRAITE
Regarding the obligation of an employee to resume usual duties with their employer after a salary deferral arrangement leave, CCRA stated:
An...
Subparagraph 6801(a)(vi)
Administrative Policy
8 May 2002 Internal T.I. 2002-0135737 F - REGIME DE CONGE A TRAITEMENT DIFFERE
A taxpayer joined a deferred salary leave plan pursuant to which the deferral period was from September 1, 1994 to September 1, 1997 and the leave...
Paragraph 6801(d)
Administrative Policy
6 February 2019 Internal T.I. 2018-0762101I7 - Ruling request - DSU plan and EPSP
A Canadian public company (Employerco) proposed that the share appreciation right (SAR) units of its employees be converted into an equivalent...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 144 - Subsection 144(3) | proposed use of EPSP trust to produce equivalent of CCPC stock option plan was abusive | 577 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | use of EPSP trust to synthetically create the equivalent of a s. 110(1)(d.1) stock option plan would be a s. 245(4) abuse | 431 |
24 November 2015 CTF Roundtable Q. 2, 2015-0610801C6 - Salary Deferral Arrangements
(a) CRA has ruled ((e.g. 2005-0144541R3) that units of a 3-year bonus plan that satisfied the conditions of para. (k) in the definition of SDA...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement - Paragraph (k) | conversions of RSUs to DSUs no longer permitted except for grandfathered units | 258 |
29 April 2015 External T.I. 2015-0565181E5 - Amendment to DSU plan
Would an amendment to a deferred share unit plan, giving participants the option to be paid the value of their awards in instalments over a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(11) | termination of Plan contrary to DSU rules triggered retroactive application of SDA rules | 218 |
10 April 2015 External T.I. 2014-0535951E5 - Election under DSU Plan
When must an employee make an election to defer salary or wages by receiving DSUs instead? CRA responded:
In general, a DSU plan must require that...
2014 Ruling 2012-0457101R3 - Proposed amendments to a Deferred Share Unit Plan
underline;">: Current Plan. Under a deferred unit plan administered by the "Committee" of the Board of Directors of Aco (a listed Canadian...
2012 Ruling 2011-0418571R3 - Amendment to 6801(d) Plan
In order that the Corporation's liabilities will not fluctuate with the value of the "Deferred Payment Units" ("DPUs") held by participants, the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | amendment to add stock settlement alternative | 86 |
2010 Ruling 2010-0376531R3 - Plan with DSUs and 3-year bonus deferral PSUs
Plan with deferred stock units and 3-year bonus deferral profit sharing units "Beneficiary" means a dependant or relation of a Participant who,...
2010 Ruling 2010-0353121R3 - Deferred Share Unit Plan
underline;">: Election. Executives, who otherwise would be entitled to receive annual cash award under the short-term incentive plan (STIP) of the...
19 March 2009 Internal T.I. 2009-0306971I7 F - 6801(d): Traitement fiscal pour l'employé
CRA indicated that the full amount received by participants in a deferred share unit (DSU) when they cashed in their units on maturity of the plan...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | appreciation in DSUs is not a capital gain | 202 |
2004 Ruling 2004-0072041R3 - Deferred Shares Unit
Favourable ruling with respect to a deferred share unit plan under which directors can elect to receive all or a portion of their quarterly...
2004 Ruling 2003-0033571R3 - Plan with DSUs and 3-year bonus deferral RSUs
Plan with deferred share units and 3-year bonus deferral restricted share units. "Beneficiary" means any person designated by a Participant by...
30 November 1996 Ruling 9704273 - DEFERRED DIRECTOR'S FEES 6801(D)
Favourable ruling respecting a deferred unit plan for independent directors of a public company (including non-residents) where they have a choice...
Articles
Anu Nijhawan, "Canada-U.S. Cross-border Deferred Share Unit Plans – Trips and Traps", Taxation of Executive Compensation and Retirement, Federated Press, Volume 24 Number 01 July/August 2012, p. 1559.
Wider distribution events under Code 409A (p. 1560)
One of the key requirements of Regulation 6801(d) is that payment in respect of the DSUs not...
Jessica Bullock, "Recent Administrative Positions of the Canada Revenue Agency Regarding Deferred Share Unit Arrangements", Taxation of Executive Compensation and Retirement, Vol. XV, No. 3, 2011, p. 946.
Subparagraph 6801(1)(d)(i)
Administrative Policy
21 November 2016 Internal T.I. 2016-0641961I7 F - DSU Plan
A deferred share unit plan provided that Units must be redeemed by the Corporation following termination of employment, termination of the Plan...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(11) | recognition in income of full value of deferred units issued under offside plan | 191 |